ICN.V Message Board - Msg: 27422611

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Gold/Mining/Energy : ICN.V

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From: james flannigan	6/8/2011 6:58:22 AM
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Is The Gold JR Market Irrational? The short answer is yes.I was investing in the PM markets during the bull run of the mid 90s in Jr companies.The Bre-X story was hot and many gold JRs were on fire.The market would price all gold JRs as if they were all the next Bre-X.Some companies such as Arizona Star rocketed in a matter of months from penny stock under $1 to a high of $17 on its new discovery in Chile.Another was Cartaway resources seen similar steller gains just on the companies visual of core that they thought was the next Voisy Bay.Arequipia Resources was swallowed up from penny stock to $32 by Barrick at the top of the frenzy with only a dozen or so holes punched into its new discovery.Most all JR stocks were crushed as Cartaway drill drill core was absent any ore and Bre-X was found to be a fraud.The market took a decade to recover from the fall out of the bust of Timbuktu Gold, Bre-x and Cartaway Frauds.This took place in $350 spot gold.The market had become too irrational and priced companies in the billions of market caps with no gold.South Pacific resources went to $10 just because it was near Bre-X.It too had no gold. Today the market is just as irrational but to the other extreme.Jr companies with excellent drill results at the early stage of discovery such as Newstrike Capital,ICN Resources and Premium Exploration are being sold off when excellent drill results are reported.In fact its as if they too have no gold.But we know that is not the case.We are in $1500 gold and these companied adding $ hundreds of millions in ground value with current drill programs are mostly ignore by the market.This can only lead to one conclusion.The market was irrational in the mid 90s.Today it is many time more irrational.When fear turns to greed again post the decade of destruction caused bt Bre-X investors who position early in companies with real new discoveries will reap great rewards.This time the gold is there. I own shares in PEM and ICN. James

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